News out of Sanford, North Carolina

N&O: Rabin’s son led effort to frack Lee County

News & Observer reporter John Murawski has an interesting report today on the lack of natural gas exploration in Lee County.

The story’s biggest revelation for readers in Lee and Harnett counties, though, is that the son of Republican state Sen. Ron Rabin is a self-described “wildcatter” who last fall spearheaded an ultimately failed attempt to set up a fracking operation in the area.

From the report:

So far, of the two groups that have expressed interest in drilling here, one ceased operations last year before conducting any testing. And the second unraveled this year, leaving unpaid fees and estranged business associates, according to draft business plans and private emails provided by one of those involved in the effort, Mark Rabin, a Fayetteville energy broker and the son of state Sen. Ronald Rabin. The Republican senator represents part of Johnston and all of Harnett and Lee counties; Lee is considered to be the epicenter of future fracking activity.

And:

Rabin, 56, is fond of evoking the romance of the derrick, drill pad and “Christmas tree,” a term used to describe the drilling equipment on the surface.

“There’s nothing more beautiful than driving out to a rig in the middle of the night in South Texas, a hundred miles from the Mexican border, and seeing the Christmas tree lit up,” said Rabin, who lives in Fayetteville. “And you bring some beers out there and relax with the guys, and you see people working and making great money.”

The story also references characters anyone following the fracking saga in Lee County will recognize, including former Lee County Commissioner Jim Womack and J. Daniel Butler, a “a Southern Pines lumberman and real estate investor who owns more than 3,200 acres of drilling rights in Lee County. As the county’s single largest owner of ‘mineral rights,’ which he acquired decades ago, Butler has the legal right to drill for natural gas deep under the surface of properties that are owned by others.”

According to this blogger profile, Mark Rabin “has twenty four (24) years experience in the oil and gas industry. He has been a registered oil and gas broker and has served as sales and marketing vice president for various oil and gas companies. Most notably he was co-owner of two oil and gas firms, which had meteoric success. He is very well known for his innovative oil and gas investment strategies that have been very profitable for the oil and gas investor.”

As of Sunday, Sen. Rabin’s campaign website still contained a page called “The TRUTH about Fracking” in which the senator rambles about cronyism, Obamacare, and Solyndra in an attempt to raise money off of attack ads which targeted him for his pro-fracking stance. Curiously, his personal connection to the profit side of fracking is not addressed.

Dr. Reid, state geologist, has done basic, irrelevant, science. If Reid is so adamant about hydrocarbons in North Carolina; how come he doesn’t put his money where his mouth is; quit his government paycheck, get some of his buddies and develop North Carolina oil and gas….and make some real money. Like most government people, Reid doesn’t accomplish much, except his studies to rationalize using North Carolina tax dollars for his existence.

Conventional wells (Not Science Holes), and testing, will have to be done before oil and gas companies will be interested in North Carolina oil and gas.

Drilling a conventional well:

1. Establishes potential flow rates

2. Gain stronger information related to permeability’s and porosities which are useful to determine the most effective method of extraction, such as; fracking.

3. Sidewall samples for composite evaluation.

Reid/Taylor are scared to drill conventional wells because it would call their bluff. There is just not enough formation, or definitive data, to rationalize on-land development in North Carolina.

For the amount of money they (Reid & company) are using, why drill a science holes when you can drill a conventional, and/or directional well, for roughly the same amount. Additionally, more conclusive data could be gathered which would be more relevant to exploration companies, mitigate some risk and target the primary locations more concisely. I’d like to know who is actually spending the money, and with whom.

North Carolina needs to close down its oil and gas dreams. The oil and gas industry does not care much about developing oil and gas production, on-land, in North Carolina. There is more interest regarding North Carolina offshore.

The data Reid has will remain inconclusive and will never draw any interest from relevant oil and gas companies. The citizens of North Carolina do not have to worry, there will not be any drilling & fracking in the immediate future. Reid, and company, need to be run out of town. They are wasting taxpayer money.

The article claimed that Dan Butler (largest mineral owner; Deep River Basin), spoke with Dr. Reid, and Reid advised him not to go along with my program for some inane reason. Dan, second guessed me constantly and was trying to bring other technical people to the table, which he didn’t know personally. Understand I have been in the business for 25 Years, I have very strong industry connections.

I believe Reid was telling him to drill more science holes on some of Butler’s other property. Of course, if Reid did advise him, then it was only for his own self-interest. Reid has done some basic science, but if he so adamant about hydrocarbons in North Carolina; how come he doesn’t put his money where his mouth is; quit his government paycheck, get some of his buddies and develop North Carolina oil and gas….and get rich. Like most government people, Reid doesn’t accomplish much except his studies to rationalize using our tax dollars for his existence. My geophysicist owns 5500 sq. miles of seismic and puts together some of the best oil and gas development programs in the business; he puts his money where his mouth is, he lives and dies by selling and having a reputation for programs that pay-out.

Another excuse Dan Butler gave me, personally, was his lawyer advised him that he would have too much liability; I have enough experience to know that was a lame excuse. I gave the reporter (Murawski) at least 50-60 emails that validates the relationship between Dan Butler, me and Dan Fisher. Butler denies any of the relationship. Initially, the 3 of us were going to form an LLC and 3 of us would be board members. Then all the sudden Fisher gave me the excuse he couldn’t because he is a governor appointee and Butler, of course gave me the liability excuse. They wanted me to front the company/llc. Which I would’ve done if I got the exclusive agreement from Butler to drill on his property. Here’s where it gets good: Butler wanted $100,000 upfront for the land and additional $100,000 on the back-in to secure other leases. So, if I raise money and I don’t have agreement from the right landowner and Butler takes the money and denies we have a deal…that is fraud. In addition, mineral owners can’t drill without the surface owner’s permission in some states. I did some research and found Butler had very little in surface rights, and he implied we could drill where he had none. Though I could not figure out how the mineral VS landowner rights work in North Carolina. Since oil and gas development is new to North Carolina I believe it has not been defined clearly. Though, forced pooling may have been a way to make surface right owners give it up; not sure.

Anyway, Butler flat out lied to Murawski about the relationship between Fisher, myself and him. Murawski had enough documentation to know Butler was lying.

I have attached a formal investment program that was going to be used for the LLC. You can see I was ready to roll. The tragic thing is; I spent 6 months working on the program and did nothing else. Time & money lost.

The article claimed that Dan Butler (largest mineral owner; Deep River Basin), spoke with Dr. Reid, and Reid advised him not to go along with my program for some inane reason. Dan, second guessed me constantly and was trying to bring other technical people to the table, which he didn’t know personally. Understand I have been in the business for 25 Years, I have very strong industry connections.

I believe Reid was telling him to drill more science holes on some of Butler’s other property. Of course, if Reid did advise him, then it was only for his own self-interest. Reid has done some basic science, but if he so adamant about hydrocarbons in North Carolina; how come he doesn’t put his money where his mouth is; quit his government paycheck, get some of his buddies and develop North Carolina oil and gas….and get rich. Like most government people, Reid doesn’t accomplish much except his studies to rationalize using our tax dollars for his existence. My geophysicist owns 5500 sq. miles of seismic and puts together some of the best oil and gas development programs in the business; he puts his money where his mouth is, he lives and dies by selling and having a reputation for programs that pay-out.

Another excuse Dan Butler gave me, personally, was his lawyer advised him that he would have too much liability; I have enough experience to know that was a lame excuse. I gave the reporter (Murawski) at least 50-60 emails that validates the relationship between Dan Butler, me and Dan Fisher. Butler denies any of the relationship. Initially, the 3 of us were going to form an LLC and 3 of us would be board members. Then all the sudden Fisher gave me the excuse he couldn’t because he is a governor appointee and Butler, of course gave me the liability excuse. They wanted me to front the company/llc. Which I would’ve done if I got the exclusive agreement from Butler to drill on his property. Here’s where it gets good: Butler wanted $100,000 upfront for the land and additional $100,000 on the back-in to secure other leases. So, if I raise money and I don’t have agreement from the right landowner and Butler takes the money and denies we have a deal…that is fraud. In addition, mineral owners can’t drill without the surface owner’s permission in some states. I did some research and found Butler had very little in surface rights, and he implied we could drill where he had none. Though I could not figure out how the mineral VS landowner rights work in North Carolina. Since oil and gas development is new to North Carolina I believe it has not been defined clearly. Though, forced pooling may have been a way to make surface right owners give it up; not sure.

Anyway, Butler flat out lied to Murawski about the relationship between Fisher, myself and him. Murawski had enough documentation to know Butler was lying.

I was ready to roll. The tragic thing is; I spent 6 months working on the program and did nothing else. Time & money lost.

The article claimed that Dan Butler (largest mineral owner; Deep River Basin), spoke with Dr. Reid, and Reid advised him not to go along with my program for some inane reason. Dan, second guessed me constantly, and was trying to bring other technical people to the table, which he didn’t know personally. Understand I have been in the business for 25 Years, I have very strong industry connections.

I believe Reid was telling him to drill more science holes on some of Butler’s property other than the property he was going to put up for our (OUR: Butler, Fisher, myself) drilling ventures. Of course, if Reid did advise him, then it was only for his own self-interest. Reid has done some basic science, but if he so adamant about hydrocarbons in North Carolina; how come he doesn’t put his money where his mouth is; quit his government paycheck, get some of his buddies and develop North Carolina oil and gas….and get rich. Like most government people, Reid doesn’t accomplish much except his studies to rationalize using our tax dollars for his existence. My geophysicist owns 5500 sq. miles of seismic and puts together some of the best oil and gas development programs in the business; he puts his money where his mouth is, he lives and dies by selling and having a reputation for programs that pay-out.

Another excuse Dan Butler gave me, personally, was his lawyer advised him that he would have too much liability; I have enough experience to know that was a lame excuse. I gave the reporter (Murawski) at least 50-60 emails that validates the relationship between Dan Butler, myself and Dan Fisher. Butler denies any of the relationship. Initially, the 3 of us were going to form an LLC and 3 of us would be managing partners. Then all the sudden Fisher gave me the excuse he couldn’t because he is a governor appointee and Butler, of course gave me the liability excuse. They wanted me to front the company/llc. Which I would’ve done if I got the exclusive agreement from Butler to drill on his property. Here’s where it gets good: Butler wanted $100,000 upfront for the land and additional $100,000 on the back-in to secure other leases. So, if I raise money and I don’t have agreement from the right landowner and Butler takes the money and denies we have a deal…that is fraud. In addition, mineral owners can’t drill without the surface owner’s permission in some states. I did some research and found Butler had very little in surface rights, and he implied we could drill where he had none. Though I could not figure out how the mineral VS landowner rights work in North Carolina. Since oil and gas development is new to North Carolina I believe it has not been defined clearly. Though, forced pooling may have been a way to make surface right owners give it up; not sure.

Anyway, Butler flat out lied to Murawski about the relationship between Fisher, myself and him. Murawski had enough documentation to know Butler was lying.

I was ready to roll. The tragic thing is; I spent 6 months working on the program and did nothing else. Time & money lost.